For instructions on calculating finance charges, refer to How to calculate Finance Charges (BB264800).

The Overall Past Due and Loan Balance method calculates a finance charge based on past due balances for charges and for a loan balance (for which payment is expected in the future). The finance charge is generated by adding the results of the Overall Past Due Balance and Loan Balance calculations.

1. The Formula

Finance changes are calculated using the following formula:

If calculating based on a period of days:

(Total Overdue Balance) x (annual finance charge % / 365) x Days

If calculating based on a period of months:

(Total Overdue Balance) x (annual finance charge % / 12) x Months

• How the Total Overdue Balance in the formula above is determined

1. Sum the unpaid charge balances as of the Calculate as of date of all charges associated with a fee subject to finance charge with a transaction date that is before or on the 'Calculate as of' date

Note: The unpaid charge balance is time sensitive. When looking at each individual charge, the system will disregard payments/credits with dates that fall after the 'Calculate as of' date that are applied to the charge.

2. Sum the unpaid charge balances as of the Calculate as of date of all charges associated with a fee subject to finance charge with a transaction date that is greater then the 'Calculate as of; date

Note: The unpaid charge balance is time sensitive. When looking at each individual charge, the system will disregard payments/credits with dates that fall after the 'Calculate as of' date that are applied to the charge

3. Sum the ungenerated advance deposits(a) (if selected), ungenerated financial aid(b) (if selected), and unapplied payments and credits to calculate the Total Credit Available

4. Total Overdue Balance = (Sum of unapplied charge balances in step 1) + (Sum of unapplied charge balances in step 2) - (Total Credit Available calculated in step 3)

Once the Total Overdue Balance is determined the appropriate values can be inserted into the formula above.

Definitions of (a) and (b) above:

1. How the system calculates ungenerated advance deposits

For each advance deposit that was fully funded as of the 'Calculate as of' date, sum the amounts of all of its credits with a schedule date on or before the 'Calculate as of' date, regardless if the credit has already been generated. This gives you the ungenerated portion per advance deposit. Sum all of the ungenerated portions.
• How the system calculates ungenerated financial aid

For each financial aid, sum the amounts of all of its credits with a schedule date on or before the 'Calculate as of' date, regardless if the credit has already been generated. This gives you the ungenerated portion per financial aid.
Sum all of the ungenerated portions.